Bulgaria’s state gas supplier Bulgargaz is preparing to lower its proposed 34% increase in the regulated wholesale gas price for November after securing additional withdrawal capacity at the Chiren underground gas storage facility. Its initial proposal set the price at €59.08/MWh, excluding network charges, excise duties and VAT. Access to more gas already in storage could allow the company to submit a lower final proposal despite a sharp rise in European wholesale prices.
When Bulgargaz prepared its initial proposal, the Dutch TTF benchmark was at €81.6/MWh. European quotations have since climbed by around 20%. CEO Georgi Tatarski said the revised Bulgarian price could still be roughly €40/MWh below Dutch exchange levels.
KEVR urges use of domestic gas resources
Regulator KEVR is seeking to contain the impact on households and district-heating companies, many of which are already under financial pressure. Its chairman, Plamen Mladenovski, urged Bulgargaz to use available domestic resources to smooth price increases rather than immediately pass international market volatility on to consumers. European wholesale prices make up around 60-70% of Bulgaria’s gas pricing, limiting the scope for domestic regulatory intervention.
Additional withdrawals from Chiren can provide temporary relief, but cannot fully shield the market from international prices.
